The compound interest (compounded annually) on a sum of money invested for two years is ₹10125. If the rate of interest is 25% per annum, then what is the amount after these two years?

₹28125

From the formula for compound interest, we know,

C.I = P(1+$\frac{R}{100})^t$– P

10125 = P [ 1 + \(\frac{25}{100}\) ]² - P

10125 = P [ \(\frac{5}{4}\) × \(\frac{5}{4}\)  - 1 ]

10125 = P[ \(\frac{9}{16}\)  ]

P = 18000

We know,

Amount = Principal + Compound Interest

= 18000 + 10125

= Rs. 28125